The dollar is on its way to the strongest weekly show in two months, with poor interest reduction

The US dollar is on its way to register its best weekly performance since early August, after the strong economic data in the United States has urged traders to re -evaluate the scope of the federal reserve interest rates, while the markets await the release of the inflation report on Friday. The Bloomberg index for the immediate dollar was a slight change after reaching its highest level on Thursday to rise more than 0.7% over the past five days. The yield on US Treasury bonds also prepares two years (most sensitive to monetary policy decisions) to achieve the biggest weekly profit since the beginning of July. Recovery interest forecasts are currently assessing the possibilities of lowering interest rates at a strong pace after the US work data and economy came better on Thursday than expected. After the market has nearly two cuts by a quarter percentage point by the end of the year, the possibilities are now closer to parity. The Personal Consuming Expenses Index for August, which is the federal reserve’s preferred inflation, later today. The Federal Reserve warns wrote in a memo in Danske Bank Strategists that “the data constitutes a warning to the federal reserve”, which indicates that the dollar and short -term returns will rise in the short term. They added: “With the acceleration of growth, outside the estimates, the market focus can again go to the federal task of combating inflation.” Also read: “City Group”: The narrative to abandon the US dollar is just a ‘mirror’ and although the dollar on Friday reduced some of its profits, any positive surprise in the data for personal consumption expenses can quickly push it to recover its upward path and achieve the best performance of the US currency for months. David Formster, a main strategic for creditworthiness Agricole, wrote that “the markets witnessed by trade related to US interest rate movements still confirm a reduction in the interests of the Federal Reserve, which means that the dollar can only be affected if inflation drops.” Options markets have strengthened these expectations.